Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Taxes (https://www.askmehelpdesk.com/forumdisplay.php?f=320)
-   -   Tax on tutorial service provided to US students (https://www.askmehelpdesk.com/showthread.php?t=276157)

  • Nov 2, 2008, 01:24 AM
    geniusy_2006
    Tax on tutorial service provided to US students
    I recently subscribed to a site and am answering questions asked by students.

    The students are paying through the site and the same is given to tutor after deduction of company's charges.

    Now the company is asking to submit W-8BEN Form.

    I want to know

    (1) What is this form about?

    (2) What is the status of the Taxation on the Amount Earned?

    (3) Will I need to pay taxes in both the countries.. USA and India?

    Thanks
  • Nov 2, 2008, 11:52 PM
    MukatA

    You may need to file W9 instead of W-8BEN. Income may be taxable in the U.S.

    You will report this in India also if you are resident in India for the financial year and your total income is more than income not subject to tax.
  • Nov 3, 2008, 01:04 AM
    geniusy_2006
    Quote:

    Originally Posted by MukatA View Post
    You may need to file W9 instead of W-8BEN. Income may be taxable in the U.S.

    You will report this in India also if you are resident in India for the financial year and your total income is more than income not subject to tax.


    I will be filing return in INdia and will be paying taxes in the income.

    What should I do so that there is no deduction of Income Tax from my payment.

    Which form W-8BEN ?

    The site is based in US and I am working from India. Payment will be routed through Paypal.

    Thanks.
  • Nov 3, 2008, 08:55 AM
    AtlantaTaxExpert
    In my opinion, because you are NOT in the U.S. and the income was not earned while in the U.S. you are NOT subject to U.S. taxes.

    The Form W-8BEN will certify this fact and prevent withholding of income from your payments by the sponsoring company.
  • Nov 3, 2008, 01:23 PM
    MukatA

    Yesm ff geniusy_2006 is not in the U.S. his income is not subject to the US. Taxes.
  • Nov 3, 2008, 02:02 PM
    geniusy_2006
    Quote:

    Originally Posted by MukatA View Post
    Yesm ff geniusy_2006 is not in the U.S., his income is not subject to the US. taxes.


    So I should send the W-8BEN form to the company.
  • Nov 3, 2008, 02:03 PM
    geniusy_2006
    Quote:

    Originally Posted by AtlantaTaxExpert View Post
    IMHO, because you are NOT in the U.S. and the income was not earned while in the U.S., you are NOT subject to U.S. taxes.

    The Form W-8BEN will certify this fact and prevent withholding of income from your payments by the sponsoring company.

    Thanks.

    SO I should send the W-8BEN form to the company?

    Will scanned copy work?
  • Nov 3, 2008, 02:59 PM
    AtlantaTaxExpert
    Yes, send the W-8BEN to the company.

    Yes, a scanned copy should work initially, but make a photocopy for your records and mail them the W-8BEN with your original signature on it.

  • All times are GMT -7. The time now is 03:46 AM.